(CercleFinance.com) – The Paris Stock Exchange accelerated downward on Tuesday after the German inflation figures and the decline is exacerbated 40 minutes from the close: the challenge will be to preserve the support of 5,980.
The CAC40 index is currently down more than 1.40% to 5,970/5,975 points, while the Euro-Stoxx50 is down -1% and the DAX -1.2%.
After 90 minutes, the Dow Jones and the S&P500 lost -1.2%, the Nasdaq limited the loss to -0.8% (11,430)… despite strong tension in rates which will remain ‘the fact of the day’ .
Wall Street is already threatening significant support as the US Federal Reserve begins its back-to-school monetary policy meeting today.
Market participants are overwhelmingly expecting a further 75 basis point hike in the federal funds rate target after the two-day meeting.
“A 100 basis point hike, whispered by some in the market, seems rather unrealistic to us given the risk of being perceived as succumbing to panic, and therefore counterproductive,” said Thomas Costerg, economist at Pictet Wealth Management. .
Note that the central bank of Sweden, for its part, raised its key rate by +100Pts on Tuesday morning.
The European markets are coping very badly with the shock of the inflation statistics (PPI) in Germany with a historic rate of +45.8%. Bunds and OATs show +15Pts at 2.500 and 1.945% respectively, Italian BTP shows +18Pts at 4.22%.
Producer prices in Germany soared 7.9% (sequentially) in August to post a jump of nearly +46% over the past 12 months, Destatis, the federal statistics office, announced on Tuesday.
In both cases, these are historic highs since the creation of the statistics (since 1948).
By way of comparison, economists were forecasting an increase of just 1.3% from one month to the next, knowing that producer prices had increased by 5.3% on a month in July and by 37.2% on a year.
The surge in these prices is mainly due to soaring energy costs, especially electricity, which have more than doubled year-on-year
Excluding energy, the increase reached 0.4% monthly and 14% annually.
In the United States, building permits continued to decline in August (-10%), but housing starts rebounded by +12.2%, show official statistics published on Tuesday.
The Department of Commerce that they rebounded to reach the figure of 1,575,000, where the consensus was for 1,460,000.
The heaviness persists on US bonds, with a yield on T-Bonds which shows +10Pts to 3.59%, the highest since 2011 (for 10 years).
But records are also broken for 5 years (3.75%), 2 years (+4pts at 3.985%) and 1 year (+2pts at 4.075%).
On the foreign exchange market, the dollar resumed 0.5% against the euro, to 0.9970.
Bitcoin finds itself in a critical situation again with -3% towards $18,800, crypto as a whole loses more than 3%.
Crude prices reversed course downwards in London with a barrel of crude falling -1.5% below $85 after its sharp decline in the past week.
The WTI fell -1.4% to $83.8 on the NYMEX.
On the stock news side, Cathay Pacific renewed its service contract with Safran Nacelles to support the thrust reversers of their 51 Airbus A330ceos.
Safran Nacelles has also been selected by Cathay Pacific and its subsidiary HK Express to support the nacelles of their 32 Airbus A321neos equipped with LEAP-1A engines from CFM International. These two contracts were signed for a period of five years.
La Française des Jeux announces that it has entered into exclusive negotiations with a view to acquiring the ZEturf group. The group is present in online horse betting as well as online sports betting under the ZEbet brand. In 2021, the company recorded stakes of nearly 800 million euros, including more than 100 million euros in B2B.
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